IRS Amendment and Mortgage Lender Verification (4506-T, 4501)?
I am in a difficult situation and need your guidance and expertise. Please help. The following is my scenario:
I am currently in pending status for a home at this time and processing the loan.
I am a W2 income employee with gross income more than enough to quality for my home loan with good credit, 20% down payment, and absolutely no other issues as advised by the lender.
However, on my 2010 tax return (1040), I mistakenly filed for too much deductions including business/travel vehicle and job related expenses (that I did not incur) that brought my net taxable income down to less than half of my gross. This was an error/mistake on my part so please don’t judge. Because of this the lender would have to use my taxable income instead of the gross income that appears on my W2, and this amount is not sufficient to qualify for my loan.
I have already AMENDED the tax return and removed the job expenses, and doesn’t have any work related deductions, and express mailed to the IRS today 04/25/11, in which they should received it on 04/27/11. So my gross income would be used for the qualifications instead.
However, I have read that the IRS may take 8-12 weeks or even more to process an amendment to a tax return. But in my case, I am not expecting a refund, I am expecting to pay the tax I owe in installments to be set up with the IRS. I am also currently paying them on taxes for the previous years in installments. There is absolutely no tax liens on my file.
All I need is for the IRS to update my file and update the numbers in my amendment and not process any type of return so that my lender could verify the amendment and my income via the 4506-T or 4501 form that is generally used to do so.
MY QUESTIONS: will the IRS update my file in time in the next 2 weeks so that the lender could verify my return and income via the 4506-T or 4501? I am bound to close in 2 weeks.
Is there any lender that only used my physical paper tax amendment and do not check with the IRS?
Are there any other alternatives for my dilemma?
Thank you so much & I truly appreciate your reply.